This report and its complementary assessment tool provide an analysis of different policies that can spur growth in energy efficient buildings. With the United Nations Sustainable Energy for All Initiative in mind, the report presents the impacts of these policies in the areas of economic development, social development, and environmental goals. Within this framework—and with the use of the assessment tool—the authors encourage a productive dialogue between policymakers and the private sector in order for building efficiency to make a measurable contribution to the Sustainable Energy for All goals.

This report reviews many recent efforts around the world to transform buildings through policy and presents two illustrative case studies. The options for government action and policy fall into six categories:

• Building efficiency codes and standards are regulatory tools that require a minimum level of energy efficiency in buildings, appliances, equipment or lighting. If they are well designed, they can cost-effectively decrease energy costs over each item’s lifetime.

• Energy efficiency improvement targets are goals that can be set for a country or city. Setting a target for an entire geography can motivate greater action, especially if there is an entity responsible for meeting that target. In addition, governments can set efficiency
improvement targets for publicly owned buildings to build capacity and stimulate the building efficiency market.

• Policies and actions that increase awareness, information and market transparency can enable building owners, tenants and operators to make informed energy management decisions. Transparent, timely information can help in tracking performance against goals. These policies and actions include competitions, audits, rating and certification programs like LEED, disclosure of energy performance, and public awareness campaigns.

• Financial incentives can help energy efficiency projects overcome cost barriers. These include grants and rebates, tax incentives, government risk mitigation guarantees, revolving loan funds, tax-lien financing, and policies that enable energy performance contracting. Scaling up building efficiency will require new forms of engagement with the investor community to design scalable, replicable financing mechanisms with a special focus on emerging economies.

• Utility programs engage utilities in making their customers more energy efficient. These programs include energy efficiency spending requirements for utilities, on-bill financing, advanced metering, and pricing that more accurately reflects the cost of producing electricity.

• Human and technical capacity can be built through policies and actions both inside government through direct technical assistance and in the market through workforce training programs.